2018 waec financial accounting answer

April 19, 2018

ACCOUNTING OBJECTIVE
01-10: DABDABABBC
11-20: BCAADBBBAA
21-30: ADCABCBDDC
31-40: BACBDDACDB
41-50: CCCBACCCAC

(7a) Statement Of affairs as at 1 | 1 | 06 Tabulate Right Table Capital ( Opening ) N 30,000 Creditors N 1 ,000 Insurance N 2 ,000 N 33,000 Left Table Land And Building N 15,000 Motor Vechicle N 6 ,000 Stock N 4 ,000 Cash N 6 ,000 Debtors N 2 ,000 N 33,000

(7b) Trading Profit and loss account for the year ended 31st december 2016 Tabulate Right Table opening stock N 4000 purchases N 11,500 15,500 Closing Stock ( 2 ,000 ) Cost of goods sold 13500 gross profit cld 17500 31,000 salaries N 5000 rent and rates N 4000 insurance N 5000 dep on motor vechicle N 2000 net profit N 1500 17500 Left Table Sales N 31,000 31,000 gross profit b | d N 17,500 N 17,500 (7c) Balance Sheet as at 31| 12| 2006 Tabulate Right Tabule Capital N 30,000 add net profit N 1500 N 31,500 current liability creditor N 500 insurance Owning N 6000 N 38,000 Table Left Fixed Assests Land and Building N 15,000 motor vehicle N 4000 19,000 current assets stock N 2000 debtors N 3000 Cash N 14,000 N 38,000

(3A)
Where a big business with diverse trading activities is conducted under
the same roof the same is usually divided into several departments
and each department deals with a particular kind of goods or service.
For example, a textile merchant may trade in cotton, woolen and jute
fabrics. The overall performance for this type of business depends,
however, on departmental efficiency.

(3B)
(i) Compare the results among the different departments together with
the previous results thereof,

(ii) Formulate policy in order to extend or to develop the enterprise in
the proper line; and

1a)
i)It can result in a business
exhausting the budget, leading to
spending more than
what is coming in.

ii)Businesses may need to file
for bankruptcy or shut their
doors if they fail to keep
adequate records from the
beginning.

iii)It can result in problems with
suppliers, payroll, utilities, and
other vital components to a
running successful business

1b)
i)Relevance means an account
information to make a difference
in decision making

ii)Comparability means an
account information can be used
to compare different entities

iii)Consistency: information is
consistently presented from year
to year

iv)Reliability means an account
information is verifiable, factual,
and neutral

2 ai)
Direct materials consist of all of the materials that become an integral part of the finished product . Direct materials should include the actual cost of the materials, as well as freight in, import duties , purchasing costs , receiving costs , storage costs and other directly attributable costs of acquiring the materials.
Example - Orange in fanta making

2 aii )
Direct labor consists of all of the personnel costs required to manufacture the finished product . Direct labor should include wages, payroll taxes , and benefits associated with personnel who are integral to manufacturing the finished product .
Example - Wage of machine operator

2 aiii)
Factory overhead consists of all of the other costs required to manufacture the finished product that do not fit into the direct material or direct labor elements. They consist mainly of indirect material , indirect labor , depreciation , utilities , rent , repairs and maintenance and insurance .
Example - Indirect wages.

2 b )
i ) RAW MATERIALS
These are the materials or goods purchased by the manufacturer . Manufacturing process is applied on the raw material to produce desired finished goods.

ii) WORK - IN- PROGRESS ( WIP ) These are the partly processed raw materials lying on the
production floor .

iii ) FINISHED GOODS
These are the final products after manufacturing process
on raw materials. They are sold in the market . There are two kinds of manufacturing industries

4a
- employees
- banks
- government
- creditors
- analyst
- owners